Dodds welcomes progress of Procurement Task Group

Finance Minister, Nigel Dodds, today attended a meeting of the Construction Industry Forum for Northern Ireland (CIFNI) to discuss their proposals for public sector construction procurement emerging from the work of the Procurement Task Group.

In response to the economic downturn, the Minister announced the formation of the Procurement Task Group last December. This group has now met on a number of occasions and has developed seven key principles to be applied to future public sector procurement.

Speaking at the meeting, the Minister said: “I welcome the progress that the Procurement Task Group has made in the last few months as captured in this interim report, which is to be finalised next month.

“The report, when completed, will lead to significant improvement in the way public sector construction contracts will be procured, which will benefit both industry and the various government construction clients.

“The production of the report, including the development of the seven key principles and the 25 supporting actions, is a model of partnership in action. It clearly demonstrates how industry and government can work together to achieve common goals and develop innovative solutions to what are complex issues.”

The Minister continued: “The interim report supports the Procurement Board’s position that contracts should be awarded on the basis of the most economically advantageous tender. The practice of awarding contracts based on lowest price alone does not deliver value for money.

“With a planned capital investment of £3billion over the next two financial years, it is vitally important that best value for money is achieved.

“This unprecedented level of public sector investment is supporting jobs in the construction industry during the current economic downturn.”

Commenting on the emphasis on small and medium enterprises within the report, Mr Dodds said: “Government recognises the importance of SMEs to the local economy and the measures within the report aimed at increasing the opportunities for SMEs and reducing the cost of bidding for public sector construction contracts are practical solutions that I believe will be of real benefit to companies at a time when tight cost control is essential.”

The Minister concluded: “I am confident that government and industry will continue to work together and the report, when published, will herald a new era in public sector construction procurement in Northern Ireland.”

Welcoming the interim report, Colin McCarthy, Chair of the Construction Industry Group for Northern Ireland said: “At a time when thousands of people are losing their jobs in the construction industry, the flow of public sector construction projects is more important than ever. The work of the Procurement Task Group has prepared the way for significant improvements in the delivery of these projects.

“I believe that the principles laid down in the report will lead to greater visibility of future tender opportunities, increase opportunities to bid for contracts and streamline the procurement process.

“I welcome the commitment shown by all of the government construction clients to the important work of the task group and we will continue to work in partnership to complete the report and focus on its effective implementation.”

Notes to Editors:

1. The final report of the CIFNI Procurement Task Group will be tabled at the Procurement Board on 7 May 2009.
2. The Construction Industry Group for Northern Ireland (CIGNI) was established in November 1998. It is made up of five colleges namely, Professional Bodies, Contractors, Specialist Sub-Contractors, Suppliers and Clients. Its purpose is to ensure that the industry operates efficiently and effectively to meet the needs of modern society and it aims to achieve this by promoting excellence in all aspects of the work of the industry. Further details of CIGNI can be obtained from the Construction Industry Group website or CIGNI Secretary: tel 028 9087 7143.
3. Media enquiries only to DFP Communications Office on 028 9052 7278 or 028 9052 27375. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.